There are over 4000 active cryptocurrencies, with numbers rising each day. NEO is among the top 10 cryptocurrencies that rule the crypto market. Dubbed the ‘Chinese Ethereum,’ NEO was the first digital coin of China.
Moreover, it once attracted conglomerates like ‘Alibaba’ and ‘Microsoft.’ Unlike Bitcoin, intended to replace the fiat currency, Neo blockchain welcomes the new wave of decentralization.
Every crypto has a story to unfurl. So, what’s NEO’s story? Will NEO survive in the future? Let’s find out. The article explains Neo blockchain, its significance, and the recent trends in neo blockchain news.
What is the NEO blockchain?
Neo blockchain aims to fully digitize assets and digital identities using smart contracts to create a smart economy. Neo blockchain platform aims to automate digital asset management (DAM) to carve a distributed, network-based, smart economy using decentralized applications. It visualizes a smart economy as digital assets and digital identities improve the quality of life.
NEO is also called the “Ethereum of China.” What is NEO in crypto? NEO is a cryptocurrency that runs the NEO blockchain smart economy.
The three essential elements of the neo-blockchain are:
Digital Assets
Digital Assets include digital property and even physical assets tokenized on the blockchain via a token for the asset. Thus users can buy, sell and exchange assets on the blockchain.
Digital Identities
Digital identities secure the network by verifying the identities of individuals, organizations, and other essential entities participating in the network.
Smart Contracts
Smart Contracts are self-executing codes that automate the agreements between various entities.
NEO defines its smart economy system with the equation:
Digital Assets + Digital Identity = Smart Economy
What is the NEO blockchain used for?
As we know, the NEO blockchain is used for digitizing assets and identities and for creating a smart economy. Primarily you can stake and make payments on the network. In addition, neo network crypto provides features such as a decentralized file storage system, identity system, and oracle system for storing price data. How does it benefit developers?
Developers can create smart-contract-based applications with NEO Contracts on real-life products and services. Furthermore, NEO works with well-known programming languages like C# and JAVA, so developers can create DApp projects without learning a new language.
What is N3? N3 is the short form of “Neo blockchain 3.0.” Erik Zhang in July 2018 launched N3 crypto. Moreover, the Neo 3 upgrades the existing NEO blockchain to a new architecture, native contracts, and a robust economic model.
The following are a few Neo blockchain wallet:
- Ledger Nano S(Hardware Wallet)
- NEON Wallet(Desktop Wallet)
- Exodus Wallet(Desktop and PC Wallet)
- NEO GUI Wallet(Desktop Wallet)
Another important term is neo blockchain explorer. What is a NEO blockchain explorer? A block is the basic unit of the network. They contain information such as NEO transactions, coin address balances, NEO rewards, and timestamps. A NEO blockchain explorer is an application that helps to scan the public ledger. So, you can discover any information in the blocks.
What are the different types of NEO tokens?
The two different native tokens of the NEO blockchain are NEO and NEO Gas. NEO(Antshares) is for establishing management and ownership roles in the blockchain, and NEO Gas(Antcoins) is for paying transactions on the blockchain. NEO helps in bookkeeping and NEO parameter changes.
Furthermore, you cannot divide NEO tokens into decimals, so the last number is 1. There are about 100 million NEO tokens. And 50 million are for fund-raising supporters, and the remaining 50 million are for developers, cross investments, and future events.
As the name suggests, NEO Gas is the currency on the network, hence, referred to as the fuel of the network. And the 100 million GAS is yet to be generated and would be according to the NEO holding ratio to the corresponding addresses.
What blockchain is NEO built on?
A consensus mechanism is the heart of a blockchain network. Unlike the trailblazers of Cryptocurrency – Bitcoin and Ethereum, NEO leverages Delegated Byzantine Fault Tolerance(dBFT), a newer consensus mechanism. dBFT personifies a country’s governance with citizens, delegates, and speakers as the chief players who maintain the system functional.
Moreover, the mechanism is similar to proof-of-stake rather than proof-of-work consensus as it leverages a voting system for choosing delegates and speakers. Consequently, NEO dBFT handles 1,000 TPS overtaking Bitcoin’s mere 3 to 7 TPS capacity.
How does it work? What does governance need? Citizens as NEO token holders; delegates as bookkeeping nodes; a speaker, a randomly chosen delegate, and citizens’ demands are transactions in the network. A solid internet connection, 1000 GAS, and equipment are the requirements to be a speaker. Citizens nominate delegates regardless of the token they hold. Consequently, one of the delegates is chosen as a speaker.
A delegate has to attend to the citizens’ demands, i.e., transactions in the network, and record them on a ledger. How do delegates verify the transactions? The speaker proposes a block. Further, the speaker sends their block over the network, so the delegates can match their blocks with the speaker’s block and confirm the validity. Finally, 2/3 of the delegates should confirm the block’s validity before addition to the network, or else the network chooses a new speaker, and the entire process restarts.
Is NEO the Chinese Ethereum?
NEO is called the ‘Chinese Ethereum’ due to its Chinese origin. The fundamental purpose of both crypto coins is to take the cryptocurrency beyond payments via smart contracts(self-executing codes). And they both aim to transform the metaverse with blockchain applications in decentralized finance, initial coin offerings (ICO), identity management, and decentralized prediction markets.
Despite the similarities, NEO differs from Ethereum thanks to its unique consensus mechanism called dBFT. Also, in the NEO blockchain platform, developers can create Defi applications with standard programming languages like C#, Java, Javascript, etc. On the other hand, Solidity is the programming language of Ethereum for dApps.
Is NEO a Chinese cryptocurrency?
NEO was formerly known as Antshares. The neo coin project was launched by the founders of the Shanghai-based R&D company On-chain – Da Hongfei and Erik Zhang, in 2014 and later became well-known as NEO. NEO was China’s first digital coin and China’s answer to Ethereum. Furthermore, neo blockchain development has received support from the Chinese government.
What happened to neo crypto?
Earlier, when NEO founders launched the crypto, it had a booming portfolio with even a stellar 2600% profits in January 2018. And here’s the most exciting part! The juncture when the Chinese cryptocurrency even promised to offer more than Bitcoin. So, why is neo crypto crashing?
There has been deterring neo crypto news lately. The neos cryptocurrency price plummeted to a bearish $20.25 in April 2022. What caused the downward trend? As we know, small cryptocurrencies mimic BTC and USD. So, the upsurges and troughs of Bitcoin and fiat currency affect neo as well, and the pandemic has further led to the downward movement.
Conclusion
NEO’s unique consensus mechanism – dBFT, is a winner in many aspects. However, neo crypto price prediction depends on several factors, such as the market trend, ICOs, increasing competition, and support from the Chinese government. The current neo cryptocurrency price is $8.89, relatively low from the spires it hit earlier. That said, predicting the future of crypto coins is difficult, given the market’s volatility. However, the NEO 3 upgrade is a development to anticipate a positive change.
